TMSP(SH:600671)2021-05-12 16:00Financial Performance - The net profit attributable to shareholders for 2020 was -40.5183 million yuan, with the parent company's net profit at -33.75 million yuan, resulting in a cumulative undistributed profit of -123.7683 million yuan as of December 31, 2020[5]. - The company will not allocate surplus reserves or distribute dividends for the year due to the negative net profit[5]. - The company's operating revenue for 2020 was ¥206,627,323.03, a decrease of 30.45% compared to ¥297,072,374.92 in 2019[25]. - The net loss attributable to shareholders for 2020 was ¥40,518,323.01, compared to a profit of ¥50,680,106.57 in 2019[25]. - The basic earnings per share for 2020 was -¥0.33, down from ¥0.42 in 2019[26]. - The total assets at the end of 2020 were ¥442,510,197.01, a decrease of 16.02% from ¥526,926,931.31 in 2019[25]. - The weighted average return on equity for 2020 was -49.64%, compared to 66.43% in 2019[26]. - The net cash flow from operating activities for 2020 was -¥8,395,914.90, a decline of 105.21% from ¥161,127,708.67 in 2019[25]. - The company's net assets attributable to shareholders decreased by 28.45% to ¥72,843,448.58 at the end of 2020 from ¥101,806,599.96 in 2019[25]. Corporate Governance and Compliance - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, which poses a risk of forced delisting if found guilty[8]. - The company has acknowledged the existence of previous non-operating fund occupations and illegal guarantees but reported no new cases during the reporting period[10]. - The audit report issued by Suya Jincheng Certified Public Accountants confirmed the financial statements with an emphasis on certain matters, indicating ongoing financial concerns[4]. - The company has committed to ensuring the accuracy and completeness of the annual report, with all board members present during the meeting[7]. - The company is actively improving its internal governance and compliance in response to previous audit findings[45]. - The company plans to strengthen corporate governance and internal control systems to ensure compliance and protect shareholder interests[153]. Shareholding Structure and Changes - The company has undergone a significant change in shareholding structure, with Qingdao Huilong Huaze Investment Co., Ltd. becoming the largest shareholder with 22.01% of shares[9]. - The company has no controlling shareholder or actual controller following the recent changes in shareholding[9]. - The company has signed a debt transfer agreement with Yongxin Huari to transfer a total of 90 million yuan in debts, with 32.15 million yuan already received as of April 28, 2021[11]. Market Strategy and Future Outlook - The company plans to focus on new product development and market expansion strategies in the upcoming year[1]. - The company is exploring potential mergers and acquisitions to enhance its market position[1]. - Future guidance indicates a cautious outlook due to the current financial performance and market conditions[1]. - The company aims to achieve profitability in 2021 by expanding its main business and improving the profitability of leading products[112]. - The company plans to enhance its marketing strategies to increase product market share and improve brand awareness[112]. Product Development and R&D - The company holds 98 drug approval numbers and 5 health product approval numbers, indicating a diverse product portfolio[33]. - The company has established long-term strategic partnerships with suppliers to ensure stable quality and reduce production costs[34]. - The company is focusing on integrating new technologies such as big data and artificial intelligence to enhance healthcare services[39]. - Research and development expenses decreased by 86.55% year-on-year to ¥642,881.98, indicating a significant reduction in investment in new product development[49]. - The company is the sole domestic producer of Amoxicillin and Clavulanate Potassium Tablets (4:1), which is undergoing consistency evaluation to enhance its market brand[81]. Legal and Financial Issues - The company has initiated legal proceedings to recover loans amounting to ¥20 million from its former controlling shareholder and related parties[46]. - The company has outstanding non-operating fund occupation of RMB 1.69 million, which has not been repaid by the original controlling shareholder Qingfeng Yuansheng[170]. - The company has initiated legal proceedings against Qingfeng Yuansheng and its related parties to recover the occupied funds, with the court having accepted the case but not yet scheduled a hearing[170]. - The company is actively pursuing legal remedies to protect its interests and those of its shareholders[170]. Operational Challenges - The company faced significant challenges due to the impact of COVID-19 and increased pressure from national medical insurance cost control policies[44]. - The company reported a significant increase in various impairment losses, totaling 46.40 million yuan, contributing to the substantial loss[77]. - The company is under regulatory scrutiny for not following proper approval procedures for significant contracts, leading to corrective measures mandated by the regulatory authority[198]. Financial Adjustments and Corrections - The company identified and corrected prior accounting errors, impacting the 2018 and 2019 financial statements, including adjustments to deferred tax assets and liabilities[155]. - The adjustments resulted in an increase of RMB 27 million in other receivables and a decrease of RMB 27 million in construction in progress for the 2018 balance sheet[160]. - The total assets after adjustments amounted to CNY 526,926,931.31, reflecting a decrease of CNY 9,742,723.37 from the previous figure[161].